MedAssets to Acquire Claims Processor and Healthcare ARM Firm

MedAssets Inc. and XactiMed Inc. announced today, they entered into an agreement whereby MedAssets will acquire XactiMed, a leading provider of web-based revenue cycle technologies and services to the healthcare industry. The agreement, which is expected to be finalized in May, will expand the offering of MedAssets Net Revenue Services to include claims management, remittance management, denial management solutions, and an array of revenue cycle services and consulting.

Based in Richardson, Texas, XactiMed is ranked number one in KLAS for Claims Management in 2006. The company also offers Medicare direct claims processing, accounts receivable collections and denials management with more than 350 hospitals and provider organizations as clients.

The addition of XactiMed’s solutions with the MedAssets Net Revenue Systems’ portfolio will offer healthcare providers an integrated suite of technologies and services to improve accuracy in their revenue cycle processes, improve accounts receivable days outstanding, increase charge capture, speed collections and improve compliance. MedAssets’ current revenue cycle offerings include chargemaster management, charge capture auditing, defensible pricing, denials management, as well as supply item file and chargemaster linkage.

XactiMed’s president and CEO, D.T. Nguyen, who will continue leading this business, stated that MedAssets was a perfect strategic and cultural fit to help XactiMed deliver greater value and continued outstanding service for its customers. "We are excited to be part of a company where our industry leading capabilities in revenue cycle would be complementary and add value right away in a stronger and broader offering. We look forward to being part of a team to build and execute a much larger and comprehensive revenue cycle strategy. MedAssets is a perfect fit."

"This agreement will provide us with more resources to solve our customer’s revenue cycle issues," said Neil Hunn, president of MedAssets Net Revenue Systems. "XactiMed’s solutions and services will complement as well as expand MedAssets’ revenue cycle suite, allowing us to provide an integrated, comprehensive offering to help healthcare providers improve their net revenue by improving business processes around billing and collections. MedAssets continues to remain fully committed to the development of an integrated, end- to-end revenue cycle solution". MedAssets’ mission is to improve healthcare providers’ margin and cash flow by solving significant operational problems with a customized solution of technology and service.

"At MedAssets, we will continue to focus on expanding and developing our service offerings to ensure we remain a strategic business partner to healthcare providers," said John Bardis, chairman, president and CEO of MedAssets. "Having a complete, integrated suite of technologies to address the key financial and operational issues of providers helps drive quality of care and efficiency in our healthcare system."

XactiMed was advised by the investment banking firm of B.C. Ziegler and Company and the law firm of Hughes & Luce, LLP. Terms and conditions of the XactiMed agreement are not being disclosed.